Reddit beats Q1 revenue estimates with $663M, ad revenue surges 74%, shares rise 7.7%

Reddit reported first-quarter revenue of $663 million, surpassing analyst estimates of $611 million, driven by a 74% surge in advertising revenue and a 75% increase in advertisers. Adjusted earnings per share were $1.01, well above the expected $0.58, and adjusted EBITDA reached $266 million, beating estimates. Daily active users rose 17% to 126.8 million, exceeding expectations. Reddit also provided strong guidance for Q2 revenue and EBITDA, highlighting cost discipline and improved gross margins despite increased AI investments, leading analysts to raise revenue and EBITDA forecasts for 2026.